Granny Flats As An Investment

Investment Analysis

  • Granny flats are cheap and safer investment. Granny flats:
  • Achieve an excellent investment return.
  • Turn negatively geared properties into a positive cash flow investment.
  • Attain rental yields of 15-25% per annum PLUS capital growth each year
  • Have tax depreciation benefits of up to $6,000 per annum
  • Is a tangible asset that you can see and touch
  • Provides peace of mind knowing that your investment is not reliant on the stock market
  • Provide extra income which allow’s you to pay down your mortgage quicker
  • Creates greater equity to your home or investment portfolio

Let’s assume the following:

Rental income of $350 per week amounts to: $18,200.00
Average price of 2 bedroom Granny flat amounts to: $85,000.00
Yield on rental return: 21%
Repayments on loan for Granny flat (85,000 x 7.7%): $6,545.00
Therefore: $18,200.00 -
Money left after paid off repayments: $11,655.00